Analysis of a locative efficiency among small holder bean farmers in Uganda (UBOS data 2013/2014/15)

Abstract

The study looked at allocative efficiency of bens in Uganda. The study based on panel data 2014/2015.the objectives where estimating the production function of the beans, calculating the marginal value of the product, the production of beans in Uganda is still low because of inefficiency in allocation of factors of production. There is need to maximize output with scarce resources. The study used secondary data as a research design and the data collection tool. Data was analyzed using descriptive statistics to study the mean and standard deviations of factors of production. The cob Douglas production function was used to estimate the elasticizes of factors of production. The analysis shows that a 10% increase in farm size, labor, quantity of seeds and labor cuttings will lead to a 1.4, 5.5 and 1.5% increase respectively in bean output. The value of the returns to scale (RTS=0.841) shows that the farmers were producing at the economic region of reducing returns (Stage II1) .the marginal value product of seed and labor was 7576.= and 609.8567=.the results showed there was under allocative efficiency for seeds and over alocative efficiency for labor.